HomeMy WebLinkAboutItem 5: Public Hearing on an Ordinance Concerning Multiple-Unit Housing Property Tax Exemptions
ECC
UGENE ITY OUNCIL
AIS
GENDA TEM UMMARY
Public Hearing and Possible Action: An Ordinance Concerning Multiple-Unit Housing
Property Tax Exemptions and Amending Sections 2.945 and 2.947
of the Eugene Code, 1971 (to Reflect Changes to the Sunset in the State Statutes)
Meeting Date: October 24, 2005 Agenda Item Number: 5
Department: Planning and Development Staff Contact: Richie Weinman
www.eugene-or.gov Contact Telephone Number: 682-5533
ISSUE STATEMENT
The City Council is asked to conduct a public hearing and consider an ordinance that extends the sunset
date of the Multiple Unit Property Tax Exemption Program (MUPTE) from 2006 to 2012. City Council
action could take place either immediately after the public hearing or on November 14, 2005.
BACKGROUND
The City of Eugene has participated in the MUPTE program for over 25 years. This incentive program
for core area housing is available to the City because it is enabled in state statute. Each individual local
exemption must be approved by the City Council. The program is set to terminate in 2006. The most
recent legislative session extended the program to 2012. Extension of the program was a priority in the
City’s legislative policies and the IGR committee supported a six year extension.
This action is a “housekeeping item” that brings the City’s ordinance into compliance with the state
statutes.
The City and other local taxing districts may forgo revenue when property is exempted from taxes. In
the MUPTE program the land continues to be taxed. If a taxed improvement is removed from the
property, there is a tax loss during the exemption period. In past cases this revenue is recovered and
substantially increased once the exemption period is over, because the value of the added improvement
is much greater than what was removed. This ordinance only enables the program. Each tax exemption
application is approved by the council on a case-by-case basis.
COUNCIL OPTIONS
The City Council may approve or deny the ordinance after conducting a public hearing.
CITY MANAGER’S RECOMMENDATION
The City Manager recommends the adoption of the proposed ordinance.
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SUGGESTED MOTION
Move to approve an ordinance concerning multiple-unit housing property tax exemptions and amending
sections 2.945 and 2.947 of the Eugene Code, 1971.
ATTACHMENTS
A. Proposed Ordinance
FOR MORE INFORMATION
Staff Contact: Richie Weinman
Telephone: 682-5533
Staff E-Mail: Richie.d.weinman@ci.eugene.or.us
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ATTACHMENT A
ORDINANCE NO. __________
AN ORDINANCE CONCERNING MULTIPLE-UNIT HOUSING PROPERTY TAX
EXEMPTIONS AND AMENDING SECTIONS 2.945 AND 2.947 OF THE
EUGENE CODE, 1971.
The City of Eugene does ordain as follows:
Section 1
. Subsections (6)(a)1 and (6)(b)1 of Section 2.945 of the Eugene Code, 1971,
are amended to provide:
2.945 Multiple-Unit Housing - Property Tax Exemption.
UU
(6)
In approving an application, the council must find that:
(a) In the case of the construction of, or the addition or conversion to multiple-
unit housing:
1. The construction, addition or conversion will be completed on or before
January 1, [2006] 2012;
(b) In the case of housing subject to a low income housing assistance
contract with an agency or subdivision of this state or the United States,
1. The application for exemption was made on or before January 1,
[2006] 2012;
Section 2
. Subsections (1)(d) and (5) of Section 2.947 of the Eugene Code, 1971, are
amended to provide:
2.947 Multiple-Unit Housing - Termination of Approval, Review.
UU
(1)
After a resolution approving an application has been filed, if the city manager
finds that:
(d) Construction of multiple-unit housing was not completed on or before
January 1, [2006] 2012, or
(5)
If construction, addition, or conversion of multiple-unit housing is not
completed by January 1, [2006] 2012, upon receipt of a request from the
property owner, the council may, by resolution, extend the deadline for
completion of construction of multiple-unit housing for a period not to exceed
12 consecutive months, if it finds the failure to complete construction by the
time specified in the resolution was due to circumstances beyond the control of
the owner, and that the owner had been and could reasonably be expected to
act in good faith and with due diligence.
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Section 3.
The City Recorder, at the request of, or with the concurrence of the City
Attorney, is authorized to administratively correct any reference errors contained herein or in
other provisions of the Eugene Code, 1971, to the provisions added, amended or repealed
herein.
Passed by the City Council this Approved by the Mayor this
____ day of ______________, 2005. ____ day of _______________, 2005.
_______________________________ ______________________________
City Recorder Mayor
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